The increasing demand for barbecued food in the Asian region is creating a wide room for the charcoal briquettes industry to expand. Charcoal briquettes are used to grill food, and since preparing the food by grilling requires no or quite a low amount of oil, it is considered healthy. As a result of this, the preference for barbecued food is growing in the region. Moreover, according to industry experts, competition among barbecue restaurants in the Asian region is expected to increase, with the growing popularity of this culinary concept.
The barbecue culture is gaining traction in emerging economies, such as India and China, where consumers are increasingly embracing the idea of grilling their own food in a controlled environment. Owing to such factors, the Asian charcoal briquettes market is projected to demonstrate a CAGR of 6.2% during the forecast period (2020–2024), in order to reach $1,158.4 million by 2024.
The charcoal briquettes industry of Asia is facing the severe impact of COVID-19. The demand for charcoal briquettes majorly comes from the hospitality and construction-associated industries, such as steel, cement, and ceramic, which are witnessing the adverse impact of COVID-19, due to the factory shutdowns and nationwide lockdown in several countries. Further, Indonesia, which is a charcoal export-oriented country, is finding it difficult to export its charcoal, due to border closures, as a result of which the overall charcoal briquettes market supply chain has been disturbed in the region.
Hexagonal Charcoal Briquettes Captured Largest Market Share
On the basis of type, the charcoal briquettes market in Asia has been classified into hexagonal, coconut shell, octagonal, round, and others. Among all, the hexagonal type captured the largest market share in 2019, owing to its high-volume consumption in the hospitality industry, especially at hotels and restaurants, for grilling purposes. Consumers prefer the hexagonal shape as it provides long burn time, uniform heating, and easier production, compared to other types of charcoal briquettes.
Based on application, the Asian charcoal briquettes market has been categorized into barbecue, industrial, and metallurgical fuel Among these, the industrial category is expected to showcase the highest growth rate during the forecast period, owing to the increasing use of charcoal briquettes, as a fuel, in industrial boilers and the textile, crop processing, and food processing industries.
Based on country, the charcoal briquettes market in India is expected to witness the highest product demand in the coming years, on account of the increasing consumption of charcoal briquettes in the production of steel and cement, due to their easy availability and low cost. Further, the increasing popularity of barbecued food in the country is fueling the demand for charcoal briquettes.
Region Home to Unorganized Charcoal Briquettes Market
The region has several small-scale charcoal briquettes manufacturers, which has resulted in a highly unorganized charcoal briquettes market. Companies are using various strategic initiatives to increase their revenue. For instance.
In May 2019, Western Beef Inc. and Prime 6 Charcoal signed a partnership agreement, through which. Western Beef Inc. became a retail partner of Prime 6 Charcoal, to sell the latter’s hexagonal charcoal briquettes used for barbecue. Western Beef Inc. will sell the charcoal briquettes through its supermarket stores and website. The product is offered in bundles, which include 36 hexagonal bars of briquette charcoal.
In addition, in July 2018, the Ecosystems Research and Development Bureau (ERDB) encouraged local government units (LGUs) in the Philippines to adopt carbon-credit-eligible charcoal briquettes for the management of solid waste. The ERDB is engaged in providing technology and training to manufacture charcoal briquettes, to reduce the cutting of trees for charcoal.
Some of the players operating in the market are COCO Energy, Mackay Green Energy Inc., Matsuri International Co. Ltd., Mesjaya Abadi Sdn Bhd, PT. Coconut Charcoal Briquette Factory, Sagar Charcoal and Firewood Depot, Subur Tiasa Holdings Berhad, PT. Ruby Privatindo, Life Green Charcoal Sdn Bhd, and Thailand Premium Charcoal Supplier.